VW Group’s executive committee is reportedly going to meet in order to discuss CEO Herbert Diess’s demand for a contract extension.
Diess is seeking the support of the families with a majority voting stake in the German carmaker for an extension of his contract, which would be seen as a vote of confidence in his work as head of the VW Group.
Citing sources familiar with the matter, Reuters reports that the executive committee will convene on December 1. “The options will be put on the table,” one of the sources said, adding that the outcome of the deliberations remains unclear.
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The VW Group CEO has faced opposition from the company’s board to his efforts to reform the biggest European carmaker and he may change his strategy if his attempts continue to be blocked, said another source familiar with the matter.
Six months ago, Diess lost his position as VW brand CEO following boardroom tensions. Diess was trying to convince the carmaker’s labor leaders, who control nine of the 19 seats on the board, to agree to new cost cuts. He was also forced to apologize for accusing fellow board members of leaking information to the press.
Herbert Diess was first appointed to lead the VW brand in 2015, before taking over the whole Group in April 2018. His current contract is going to expire in 2023 and German companies traditionally negotiate contract extensions only a year before the expiration date.
VW Group’s executive committee is headed by Hans Dieter Poetsch, and includes Wolfgang Porsche, Hans Michel Piech, VW’s labor chief Bernd Osterloh, and Lower Saxony premier Stephan Weil.
